Consumer Foodservice

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Fast Food in Egypt

Sep 2014|Pages: 37

Price: US$900

About this Report

Executive Summary

TRENDS

During 2013, fast food in Egypt performed very well in comparison with some other consumer foodservice categories which are more dependent on inbound tourism. Fast food in Egypt is a relatively well developed consumer foodservice category and fast food remains most popular among Egypt’s ever increasing youth population, a group which comprised the majority of the Egyptian population at the end of the review period. Because the Egyptian consumer foodservice industry caters mainly for young people, it is important for companies intent on success in the category to maintain competitive pricing policies and this proved to be particularly challenging for many operators in the category in 2013 as inflation rose to 9%.

COMPETITIVE LANDSCAPE

Egyptian Co for International Touristic Projects maintained its leading position in fast food in 2013 with a 6% value share in the category and accounting for 28% of value sales in chained fast food. The company continues to benefit from its strong brands and the high levels of consumer recognition of these brands, which include KFC, the dominant player in chained chicken fast food with a 71% value share in 2013. The company also led in ice cream fast food with its Baskin-Robbins brand, holding 32% of the market in value terms. The company’s strong performance was also supported by its prominent advertising campaigns and highly visible promotions.

PROSPECTS

Fast food is likely to continue performing positively during the forecast period and currently there are no obvious indications that any significant changes will occur in the prevailing consumption patterns of Egyptian consumers. The Egyptian consumer foodservice industry has so far proved itself to be quick to adapt to various macroeconomic developments. However, with ongoing instability set to prevail in the country throughout the forecast period, it is increasingly likely that foreign investors will remain reluctant to make further major forays into consumer foodservice in Egypt. Consequently, fast food is expected to increase in value at a CAGR of 3% over the review period, a superior performance to the marginally negative value CAGR recorded over the course of the review period.